After years of uncritical enthusiasm, the blockchain world experienced a significant cooling down last winter and the CIO came along, and with it the management of businesses and their business units should be well prepared for the inevitable warming and the onset of spring. This will come together with more appropriate technologies, tuned rules for working with blockchain – be it industry or based on possible new legislation, and above all successful projects. Let us try to outline what kind of projects could be. Blockchain was born as an early concept in the early 1990s and was put into practice ten years ago along with the digital (cryptographic) currency – bitcoin. The first considerations and attempts to use a new type of decentralized database with irrevocable records, for example for the management of public document systems such as land registers, for the creation and self-regulation of decentralized markets or goods movement or origin tracking systems, appeared quite early. But with blockchain it is not as hot as it seemed three years ago – like most new technologies, it is subject to the phenomenon of initial hype, followed by sobering and disillusionment (reality), followed by real solutions for broader enterprise deployment (productivity) – a process that describes the so-called hype curves (in the case of blockchain, for example, the current Gartner 2019 Hype Blockchain curve in the business).
What is Blockchain?Blockchain is a special kind of distributed decentralized database in computer science that keeps an ever-increasing number of records protected against unauthorized interference from both the outside and the peer-to-peer network nodes themselves. The most common application of blockchain technology is to use it as a cryptocurrency account book (eg bitcoin) that stores user transactions. Combined with cryptography, it can ensure the anonymity of operations and prevent unauthorized transactions. […] The traditional (original) blockchain implementation consists of two types of records: transactions and blocks. Transactions are data entered into the database by users, blocks are records confirming when and how a particular transaction was added to the blockchain database.
The main advantages of blockchain include:
- The ability of a large number of nodes to reach a single consensus on the most recent state of large amounts of data, such as records in the ledger.
- The ability of any node to decide with an acceptable degree of certainty whether a given transaction falls within the blockchain or not.
- The ability of any node that created or receives a transaction after some time to decide with a reasonable degree of certainty that the transaction is valid and resettable permanently in the blockchain and whether the two transactions did not collide.
- An obstacle large enough to prevent attackers from modifying or rewriting transactions – all exchanges/transactions are stored in individual blocks that follow each other linearly.
- An automated form of conflicting transaction solution that ensures that invalid transactions never become part of a validated dataset.